Professional Tax Registration

A tax is a financial charge imposed upon a taxpayer that is an individual or a legal entity by a state or any other authorized body with a purpose of funding various public expenditures. One of such taxes is the Professional Tax.

What is Professional Tax ?

Professional tax is the tax by the state governments in India. Anyone earning an income from salary or anyone practicing a profession such as chartered accountant, company secretary, lawyer, doctor etc. are required to pay this professional tax. Different states have different rates and methods of collection.Professional tax is imposed at the state level. Different states have different rates and methods of collection. However, not all states impose this tax. The states which impose professional tax are 

• Karnataka• Bihar• West Bengal• Andhra Pradesh• Telangana• Maharashtra• Tamil Nadu• Gujarat, Assam

The professional tax is a source of revenue for the State Governments. It is also payable by members of staff employed in private companies.

Who is responsible to deduct Professional Tax ?

The owner of a business is responsible to deduct professional tax from the salaries of his employees and submit the amount so collected to the appropriate government department.

He has to provide a return to the tax department in the prescribed form within the specified time.

The return should include the proof of tax payment. In case the payment proof is not enclosed, the return shall be deemed incomplete and invalid.

Documents Required

Common documents required for Professional tax registration are :

Acknowledgment of Online submitted form along with the printout of the originally submitted form

Self Attested Copy Of PAN Card Proof of the Constitution of Business Proof of the Residence of the Partners, Director & Proprietor Proof of the Place of Business (Address Proof) Blank Canceled Cheque Shop and Establishment Certificate PAN and PTEC Details of all the Partners or Directors Details of the number of employees, as well as their salary slabs. Also, it is to be noted that , all these documents are required to be self attested

Procedure for Registration

The first step is to get registered as a ‘payee’ of professional tax in the local Professional Tax Office under the respective State’s Act. This is mandatory for all individuals, persons and bodies who are liable to pay professional tax.

As to calculation and payment of these taxes through prescribed forms and methods, you have to do it yourself. Your calculation and payment has to be audited and certified by a Chartered Accountant.

When it comes to employees however, it is the duty of the employer to deduct Professional Tax. That is, apart from paying professional tax for its own activities, every employer has to calculate, deduct and pay the professional tax on the salaries paid to employees.

How can LegalRaasta help you ?

Register for Professional tax through LEGALRAASTA - Your online companion for professional tax registration. We at LegalRaasta have helped over thousand companies in professional tax registration.

You first need to

Go to our website www.legalraasta.com and select Professional tax registration option. Then Fill our online questionnaire. Select a package. Here you can also opt for additional legal services like ITR filing and service tax

registration and pay accordingly. Submit the required documents online to us and you are done on your part; we will take care of the

rest. Once, we are done you will be intimated and in case you have any query in between the process or

if you want to track your application status you can freely contact us.

That's it about professional tax registration.